Stock split- Firm Growth Industries' current stockholders' equity account is as follows:
Preferred stock $ 400,000
Common stock (600,000 shares at $3 par) 1,800,000
Paid-in capital in excess of par 200,000
Retained earnings 800,000
Total stockholders' equity $3,200,000
a. Indicate the change, if any, expected if the firm declares a 2-for-1 stock split.
b. Indicate the change, if any, expected if the firm declares a 1-for-1 reverse stock split.
c. Indicate the change, if any, expected if the firm declares a 3-for-1 stock split.
d. Indicate the change, if any, expected if the firm declares a 6-for-1 stock split.
e. Indicate the change, if any, expected if the firm declares a 1-for-4 reverse stock split
What is the current value of a share of Commonwealth Edison common stock to an investor who requires a 12 percent annual rate of return, if next year's dividend, D1, is expected to be $3 per share and dividends are expected to grow at an annual rate of 4 percent for the foreseeable future?
The Edgar Corporation currently (D0) pays a $2 per share dividend. This dividend is expected to grow at a 20 percent annual rate over the next three years and then to grow at a 6 percent per year for the foreseeable future. What would you pay for a share of this stock if you demand a 20 percent rate or return? Use as example Table 8.4 for the last exercise edgar corporation
Bb Course Messages X Bb Caracteristicas de | x Bb Caracteristicas de | x Bb Ejercicios de Practi X Bb Ejercicios de Practi X Google Traductor X Homework Help - X + X https://interbb.blackboard.com/courses/1/202110.78826/messaging/users/_33748_1/attachments/697ef47d484947f8be 193e0. of 1 + Q A' Read aloud | Draw Highlight V Erase d. Indicate the change, if any, expected if the firm declares a 6-for-1 stock split. e. Indicate the change, if any, expected if the firm declares a 1-for-4 reverse stock split. What is the current value of a share of Commonwealth Edison common stock to an investor who requires a 12 percent annual rate of return, if next year's dividend, Di, is expected to be $3 per share and dividends are expected to grow at an annual rate of 4 percent for the foreseeable future? The Edgar Corporation currently (Do) pays a $2 per share dividend. This dividend is expected to grow at a 20 percent annual rate over the next three years and then to grow at a 6 percent per year for the foreseeable future. What would you pay for a share of this stock if you demand a 20 percent rate or return? Utilice como ejemplo la Tabla 8.4 para resolver este ejercicio. PDF Caso. McDonal's Exp.pdf Open file . . . Show all X + Type here to search O T S A D O / ) ENG 4:40 PM 11/11/2020 EgEn primer lugar se calcula la suma de los valores presentes de los dividendos recibidos durante el periodo de crecimiento no constante (afine 1 al 5 en este racn) Fete totaliza $9 75 on ceoundo lugar utiliza el mod Table 8.4 Value of HILO Electronics Common Stock ar el and Dividend ante anac Present Value Interest Factor, Present Value. Year, t 15 al valo D, = $2.00(1 + 0.12)' PVIFo.15.t Present Value of First 5 Years' Dividends 5n. UA W N - $2.00(1 + 0.12) = $2.24 0.870 $1.95 2.00(1 + 0.12)2 = 2.51 0.756 $1.90 2.00(1 + 0.12)3 = 2.81 0.658 $1.85 2.00(1 + 0.12)1 = 3.15 0.572 $1.80 2.00(1 + 0.12)5 = 3.53 0.497 $1.75 D6 $9.25 Value of Stock at End of Year 5, Ps = ke - 82 D6 Ps = 0.15 - 0.06 D. = Ds(1 + 82) = $3.53(1 + 0.06) = $3.74 PS $3.74 0.15 - 0.06 = $41.56 Present Value of Ps. PV(PS) = PS ( 1 + k )s $41.56 (1 + 0.15)5 = $41.56(PVIFo.15.5) = $41.56(0.497) = $20.66 Value of Common Stock, Po = PV (first 5 years' dividends) + PV(P,) DE Po = $9.25 + $20.66 170 = 090 01 PDF Caso. McDonal's Exp..pdf Open file . . . Show all XBb Course Messages X Bb Caracteristicas de | x Bb Caracteristicas de | x Bb Ejercicios de Practi X Bb Ejercicios de Practi X 3 G Google Traductor X Homework Help - X + X A https://interbb.blackboard.com/courses/1/202110.78826/messaging/users/_33748_1/attachments/697ef47d484947f8be193e0. of 1 + A) Read aloud | Draw Highlight V Erase Stock split- Firm Growth Industries' current stockholders' equity account is as follows: Preferred stock $ 400,000 Common stock (600,000 shares at $3 par) 1,800,000 Paid-in capital in excess of par 200,000 Retained earnings 800.000 Total stockholders' equity $3,200,000 a. Indicate the change, if any, expected if the firm declares a 2-for-1 stock split. b. Indicate the change, if any, expected if the firm declares a 1-for-1 1/2 reverse stock split. c. Indicate the change, if any, expected if the firm declares a 3-for-1 stock split. d. Indicate the change, if any, expected if the firm declares a 6-for-1 stock split. e. Indicate the change, if any, expected if the firm declares a 1-for-4 reverse stock split. What is the current value of a share of Commonwealth Edison common stock to an investor who requires a 12 percent annual rate of return, if next year's dividend, Di, is expected to be $3 per future? share and dividends are expected to grow at an annual rate of 4 percent for the foreseeable PDF Caso. McDonal's Exp...pdf Open file . . . Show all X + Type here to search O T S A D - / ) ENG 4:39 PM 11/11/2020
